It is not a good year for German Rail: Even after the continuous labor dispute has with GDL and ECG to an end, there is more bad news. Whether the web can still save in the black, is uncertain.
- Damage due to strikes is higher than annual profits
- train has 17 billion euros of debt
- Group urgently needs reforms
as a result of nine waves of strikes by train drivers union GDL has the German Railways (DB) in 2015 are afraid to slip into the red. “The strike by train drivers’ union GDL have previously cost us already since last autumn more than 300 million euros,” said railway CFO Richard Lutz of “world”.
In other words, the damage caused by the labor dispute with the train drivers’ union is already larger than the net profit last year. “With regard to profit, this year is a real challenge for us,” Lutz.
17 billion euros of debt
The railway had in March for the past year said earnings before taxes announced and interest (EBIT) of 2.1 billion euros. Of this you have to deduct EUR 800 million for interest payments. The Group’s debt of around 17 billion euros. In addition, 200 million euros income taxes and € 700 million dividend to the federal government have to be paid. There are also other loads. “At the end of stay in 2014, when we deduct all costs and expenses, EUR 288 million at the box office,” reckoned Lutz before.
In order to prevent the group from sliding into the red, would Bahn CEO Rüdiger Grube reduce costs, increase revenues and lead to huge transport more efficient. Among other things, would have to go as far in the second half a lot more trains with more passengers. However, a significant increase is unlikely
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Pull strike ” like a train behind us “
” After such a series of strikes, the people do not rise just as before in the trains. The people organize themselves differently, go back by car or bike, carpool. Much of it will be held until the first snow comes.
We like pulling a train behind us, “said a railway manager. The collective agreement with the rail union ECG and a possible conclusion to the GDL on the other hand will continue to drive up costs.
This threatens not only a loss year, but significant delay in the ambitions of the train. The Board intends to invest in the coming years on a large scale, so that the Group can grow strongly in the passenger and goods transport around the world.
train needs more investment
The last 288 million euros, the the results remain after deducting all costs and burdens at the box office, “are not sufficient to fund annually planned by us growth investments of around one billion euros,” said Chief Financial Officer Lutz.
Actually should the investment over sharp rise in revenue to finance. But the board is at least for the time being only to make new debt – not a satisfactory condition for the DB executive. “From 2017 we will be investing on their own, so they can lift out of cash flow. At least that is our aim. In the long run no one can finance investments through debt, “says Chief Financial Officer Lutz